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Current as of January 01, 2024 | Updated by Findlaw Staff
(a) Except as provided by Subsection (b), a payment received by a property owners' association from the owner shall be applied to the owner's debt in the following order of priority:
(1) any delinquent assessment;
(2) any current assessment;
(3) any reasonable attorney's fees or reasonable third party collection costs incurred by the association associated solely with assessments or any other charge that could provide the basis for foreclosure;
(4) any reasonable attorney's fees incurred by the association that are not subject to Subdivision (3);
(5) any reasonable fines assessed by the association; and
(6) any other reasonable amount owed to the association.
(b) If, at the time the property owners' association receives a payment from a property owner, the owner is in default under a payment plan entered into with the association:
(1) the association is not required to apply the payment in the order of priority specified by Subsection (a); and
(2) in applying the payment, a fine assessed by the association may not be given priority over any other amount owed to the association.
Cite this article: FindLaw.com - Texas Property Code - PROP § 209.0063. Priority of Payments - last updated January 01, 2024 | https://codes.findlaw.com/tx/property-code/prop-sect-209-0063/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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